U.S. ABS warms up with $14 billion week

The U.S. ABS primary market showed its first signs of life last week as issuance nearly doubled from the previous week to hit roughly $14 billion.

More than half of those deals had yet to price as of press time, but the largest to price was a $1.8 billion home equity securitization from California mortgage giant Long Beach Mortgage and led by Goldman Sachs. The first three tranches were retained, with the largest tranche, a $536 million triple-A-rated one-year offering, pricing nine basis points over one-month Libor. The two-year tranche priced 18 basis points plus one-month Libor, while the 3.25-year tranche priced 24 basis points over the index. The final triple-A tranche of the deal, at six years in duration, priced 34 basis points over one-month Libor.

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